Market contagion between developed and emerging markets is growing

Major emerging markets, led by China, are increasingly likely to spread fear to financial markets and lead to poor stock performance in the U.S. and other developed countries, the International Monetary Fund said Monday.

Equity-market spillovers to advanced economies coming from leading emerging markets have risen 28% since the 2008 financial crisis, according to the IMF’s calculations. The movements of all nations’ equity markets in 2015 were 80% attributable to markets in other countries, compared with a 50% linkage in 1995.